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Welcome to GlobalVATOnline
PwC GlobalVATOnline is an online subscription service. It provides up-to-date business critical information on VAT/GST rates, rules and requirements around the world to help you maintain control, mitigate risk and improve the overall effectiveness of your VAT/GST function.
GlobeSearch is where we provide you with access to comprehensive, business critical information on VAT/GST rates, rules and requirements in over 80 countries, across six continents: Europe (including all 28 EU member states), North America, South America, Asia, Australia and Africa. All information is regularly updated by PwC VAT/GST specialists who reside in the countries and is accompanied by extensive supporting documentation such as copies of return forms, links to useful websites (e.g. tax authority websites) and more.GlobeSearch
Our VAT news service helps you keep abreast of important VAT/GST and customs duty developments from over 120 countries across six continents - Europe (including all EU Member States), North America, South America, Asia, Australia and Africa. This includes commentaries on new legislative proposals and recently decided cases. Hyperlinks to related subjects, case law and official documentation are included. You also have the option of receiving our weekly newsletter direct to your email inbox summarising recent developments and newsflashes, which alert you to breaking developments as they happen.News
Powerful tools and services
This section contains a variety of tools and services aimed to ease the burden on Indirect Tax compliance functions. These include automation tools, reporting tools, filing tools, validation services and return and registration forms. Please use the drop down box below to see which tools and services are included in each subscription level.Tools
Marketplaces, online sellers, distance sellers and MOSS users - watch this space!
- 06 January 2020
The EU 2015 changes on B2C supply of services (telecom, broadcasting and e-services) and the introduction of the Mini One Stop Shop (MOSS) marked a major development in the area of VAT and e-commerce. The e-Commerce VAT package, adopted by the ECOFIN Council on 5 December 2017, picked up on these developments to introduce additional simplification measures for intra-EU sales of electronic services from 2019 onwards, and by 2021 will extend the Mini One-Stop Shop to a One Stop Shop to deal with distance sales of goods to EU consumers. Furthermore, new rules for electronic interfaces such as marketplaces or platforms are introduced, which deem them for VAT purposes (in certain scenarios) to be the supplier of goods sold to customers in the EU, and make them collect and pay the VAT on these sales. In December 2018, detailed implementation rules were published by the Commission in a 'Proposal for a Council Implementing Regulation' and a ‘Proposal for a Council Directive’ which were agreed at a political level at the March 2019 ECOFIN meeting. Both legal texts were formally adopted on 21 November 2019. And in a related move, the EU Council reached political agreement in November 2019 on a set of exchange of payment data rules giving Member States the right to access information collected by payment service providers, such as banks and payment institutions, with a view to assisting in the identification of online VAT fraud. These new rules are due to take effect from 1 January 2024.
2020 Tax Policy Outlook: Charting an Unfamiliar Path Forward
- 22 January 2020
Disruption, uncertainty and a lack of familiar guideposts draw a challenging landscape for the tax professional. As tax policy shifts, impacted by both US and global tax rules, the path forward becomes muddied. This uncertainty creates both challenges and opportunities. Although the debate surrounding ‘fair share’ has largely focused on ‘digital’ businesses, proposals to change the international tax system under consideration would apply more broadly. The debate over whether multinational enterprises pay an appropriate amount of tax in the countries in which they generate revenue has been a particular focus of certain governments and non-governmental organizations.
Special Report on VAT Quick Fixes: Call-off stock simplification
Under the umbrella of its 2016 Action Plan on VAT, in October 2017 the Commission published an eagerly awaited communication document, together with a series of legislative proposals for the far-reaching reform of the EU VAT system with two key aims: to make the EU VAT system more robust against fraud, and to make it simpler for businesses trading cross-border in the Single Market. The package of measures towards what the Commission calls ‘a single EU VAT area’ includes proposals for a ‘Definitive VAT Regime’ which is intended to replace the transitional arrangements entered into in 1993. In essence, the proposals seek to treat the business-to-business (B2B) Intra-EU supply of goods as a single transaction with VAT charged by the supplier in the Member State (MS) to which the goods are moved. This framework is accompanied by certain mitigation measures and simplifications along the way including the so-called ‘Quick Fixes’ which are designed to implement a range of short term measures to reduce complexity and fraud in a number of key areas whilst the long term discussions on the Definitive VAT Regime continue. The four Quick Fixes were agreed at the end of 2018 to take effect from 1 January 2020 and include measures concerning the following areas: Simplification and harmonisation of VAT rules regarding call-off stock arrangements Simplification of VAT rules in order to ensure legal certainty regarding chain transactions Obtaining a customer’s valid VAT ID number will become a substantive requirement for zero-rating Intra-EU supplies of goods; and Harmonisation of presumptive rules on the proof required to zero-rate an Intra-EU supply of goods Where businesses are moving goods intra-EU, the new rules will have an impact in terms of VAT compliance processes and controls, foreign VAT registrations, VAT refunds, as well as potentially posing a number of questions around supply chain structuring and contractual terms and conditions entered into between commercial parties. Naturally, any changes will need time and careful consideration for their efficient and effective execution, thus prompt action is advisable given next year’s fast approaching deadline. It should also be noted that whilst the intention behind the Quick Fixes is to simplify, in practice the rules carry a certain amount of complexity without resolving all, or indeed many, of the VAT issues at stake. This Bulletin elaborates on the nature of the rules from an EU VAT law perspective, as well as setting out practical considerations and questions that businesses should take into account in order to determine the potential threat or strategic opportunity that the Quick Fixes present. It should be noted that the EU Commission is currently preparing Explanatory Notes (‘Notes’) to clarify certain aspects of the rules which have now been published in draft available via this LINK. However, a critical element that remains unclear in many cases is how individual MS will implement and apply the rules in practice at a national level, and whether the Commission’s Notes will help to ensure a more consistent interpretation of the rules. To date, based on the latest information we have, draft VAT laws are yet to be published in a significant number of MS, although we expect more MS to publish their draft law shortly. Nevertheless, in spite of the ongoing uncertainty across a number of areas, certain preparatory steps can be taken by businesses now in order to speed up implementation at an operational level, and indeed it is critical to start work now - by the time further clarity arrives from MS and the Commission, the lead time for businesses to effect the new changes before the end of the year will be very short. Call off stock simplification Rules Call-off stock is the term used to describe the supply of goods to a customer’s premises where legal title in the goods does not pass until the customer actually calls-off the goods as and when required. NB: This is not to be confused with consignment stock which is when the supplier holds stock in a particular territory from which to meet future (as yet unspecified) customer orders as and when required. In the absence of a simplification measure, under current EU VAT rules the movement of own goods to another MS would generally be deemed to be a transfer for VAT purposes. This would require the supplier to register in the MS of arrival in order to perform an Intra-EU despatch together with an Intra-EU acquisition, followed by a domestic supply to the customer at the time of call off. On the basis that the delayed timing of the legal title transfer potentially creates additional VAT compliance in the MS of arrival and therefore administrative cost for the supplier, many MS (but not all) already apply certain simplification arrangements that remove the need for a local VAT registration. However, these solutions are implemented at a national level and inevitably differ from one MS to the next which can make their practical use complex from an operational perspective. In order to simplify and harmonise the approach across the EU, from 1 January 2020 where the supplier already knows the identity of the customer in advance of the transfer of stock, the initial movement of goods will be ignored for VAT purposes and instead there will be a direct Intra-EU despatch by the supplier and acquisition by the customer at the time when the customer takes the goods out of the stock (thereby removing the need for a local VAT registration for the supplier), provided that: Call-off occurs within 12 months of arrival.● The supplier is not established in the MS of arrival (although the rules do not specifically preclude its registration there).● The customer is registered (although not necessarily established) in the MS of arrival and has provided their VAT ID to the supplier.● The supplier must keep a register of goods transferred and complete European Sales Lists (according to the Notes, with a nil value for the initial transfer, and with the actual value once the relevant goods are called off).● The customer must keep a register of goods received.● Customer substitution is possible if this occurs within a 12 month period and the relevant records are amended accordingly.● A supplier VAT registration is still required (ie, the simplification does not apply) if:○ Within 12 months, the goods are not supplied to the intended customer or substitute, or not returned to the country of despatch.○ Goods are transported to another country.○ Goods are destroyed, stolen or lost (the Notes suggest that a large majority of MS agree a small tolerance would be acceptable here - where the losses amount to less than 5% of the total stock value). Practical considerations MS are obliged to implement this simplification measure - ie, it is not optional. This means that:○ Those MS that do not yet have a simplification measure in place will need to implement the new rules into their national law by 31 December 2019.○ Those MS that already have a simplification measure in place will need to adapt the current rules in line with the new provisions - for better or worse. It is not yet clear what the impact might be on MS that currently apply consignment stock relief as well.● The supplier should be permitted to have a VAT registration in the MS where the call-off stock is located but the relief would not seem to apply where it has a fixed establishment there.● There can be call-off stock arrangements for different customers in the same MS as long as the relevant conditions are separately fulfilled by the different parties.● Agreement is needed between supplier and customer to put in place a call-off stock arrangement.● Accurate VAT compliance and record keeping will be essential in order to apply the relief.● The 12 month time limit applies in relation to the goods transferred and not per intended acquirer. Questions for businesses to consider: Do you, as a supplier or as a customer, currently use call-off stock or consignment stock arrangements, and if so in which MS? Do you understand how the current arrangements might be impacted from 1 January 2020?If you do not currently use call-off stock arrangements, do the new rules create an opportunity to put a call-off structure in place, and potentially deregister for VAT in certain MS?3. Do you know your customer before the goods are transferred and how do you document the arrangement?4. Do you, as a supplier, have a fixed establishment in the country of the call-off stock?5. Who is in charge for the transport - supplier or customer?6. Where is the stock held - ie, at the customer’s premises or at another location such as a third party warehouse?7. How long after arrival are the goods called-off, and how would you track this?8. Are goods sometimes destroyed, stolen or lost?9. Are goods transferred from the call-off stock to another MS (other than to the initial MS of despatch)? Information on the second quick fix to follow soon... For a deeper discussion of how these issues might affect your business, please call your usual PwC indirect tax specialist or if you prefer to speak to one of our global indirect tax policy specialists, please contact: Tom Corbett, Dublin: +353 (1) 792 5462 email@example.com